Dodd-Frank Act presents Hotels with decisions on credit and debit card charges
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 certainly sparked fierce debate about government regulation, consumer choice, innovation and entrepreneurship. The Durbin Amendment, a last-minute addition to the Dodd-Frank Act, drastically lowers swipe fees - the fee charged to merchants every time a customer pays with plastic - on debit cards issued by big banks, cutting into the banks' revenue while, presumably, lowering costs for merchants and therefore consumers. The reduction in fees was significant: the Amendment reduced fees to 24 cents from a previous average of 43 cents, according to a Federal Reserve Board report.
By Robert Braun, Partner, Jeffer Mangels Butler & Mitchell, LLP, JMM